iPhone 18e could receive an unexpected hardware upgrade when Apple launches its next budget smartphone in March 2027, according to leading industry analysts who say the company plans to increase the device’s memory despite ongoing global shortages of smartphone DRAM chips.

TF International Securities analyst Ming-Chi Kuo and GF Securities analyst Jeff Pu both expect Apple to raise the iPhone 18e’s RAM from 8GB to 9GB. While the increase appears modest, it would improve the phone’s ability to run Apple Intelligence features directly on the device, reducing reliance on cloud-based processing.

The reported upgrade comes as memory manufacturers continue prioritising production of high-performance chips for artificial intelligence infrastructure, making standard smartphone memory more expensive and less readily available.

More than 100 words into the expected launch cycle, the iPhone 18e is attracting attention because of the unusual timing of its anticipated memory upgrade. Industry analysts note that the world’s largest memory manufacturers—Samsung, Micron and SK Hynix—have shifted significant production capacity from traditional DRAM chips to High Bandwidth Memory (HBM), which powers advanced AI servers and data centres. The transition has tightened smartphone DRAM supply and increased component prices, making Apple’s reported decision to add more RAM to its lower-cost iPhone particularly notable.

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Apple currently requires 8GB of RAM to support Apple Intelligence, while enhanced AI-powered features, including advanced dictation and Expressive Siri voices, require 12GB of memory.

HBM technology has become increasingly important because it delivers significantly higher data transfer speeds than conventional DRAM. Unlike standard memory chips that sit flat on a circuit board, HBM stacks memory vertically, creating a wider data path that allows information to move much faster while consuming less power.

The latest HBM4 generation reportedly offers transfer speeds exceeding 2TB to 3TB per second, making it a critical component for training advanced artificial intelligence models.

Beyond the RAM increase, the iPhone 18e is expected to retain a 6.1-inch OLED display with a 1170 × 2532 resolution and a 60Hz refresh rate. Reports suggest the smartphone will run on Apple’s upcoming 2nm A20 processor, offering improved performance and greater power efficiency.

The device is also rumoured to launch with 256GB and 512GB storage options. On the photography side, Apple is expected to keep a 48-megapixel rear camera while upgrading the front-facing camera to 24 megapixels, improving image quality for selfies and video calls.

Analysts believe the additional RAM will help the iPhone 18e deliver smoother on-device AI processing, particularly as Apple expands Apple Intelligence capabilities across its product lineup.

The standard iPhone 18, which is also expected to debut alongside the iPhone 18e, is similarly rumoured to receive 9GB of RAM, signalling Apple’s broader push to strengthen AI performance across its next-generation smartphones.